viet insurance market overview
TRANSCRIPT
8/13/2019 Viet Insurance Market Overview
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INSURANCE
RESEARCH & TRAINING
CENTER
1
VIETNAMESE INSURANCE MARKET
Tran Thanh Tu
Deputy DirectorInsurance Research and Training Center
Insurance Supervisory Authority of Vietnam
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Market Overview
– Market History
– Market Performance – Supervisory Agency
Insurance Statistics
– Data Collection
– Statistics as a supervisory tool
Challenges
AGENDA
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Market History
– Monopoly of Baoviet
– Non-life business only
– 20 traditional non-life products
– Simple and limited insurance cover
– Small penetration rate (<0.4%GDP)
Prior to 1994
Market Overview
From 1994
1994: Bao Minh
1995: Joint stock
1996: Joint venture
1999: 100% foreign owned
* Life insurance: 1995
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Market Structure
Market Performance 2005-2009
16
817
21
71
8
22
9
18
27
11
1
10
28
11
1
10
-
10
20
30
40
50
2005(32) 2006(37) 2007(40) 2008(49) 2009(50)
Non-life Insurer Life Insurer Reinsurer Broker
Market Overview
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Market Overview
5yr CAGR: Non-life 25,62%; Life 9,87%; Total 16,99%
289
428
717
337
447
784
432497
929
576542
1.119
719
624
1.343
-
200
400
600
800
1.000
1.200
1.400
2005 2006 2007 2008 2009
Non-life Business Life Business Total Premiums
Insurance Premiums
Market Performance 2005-2009
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Market Overview
Insurance Penetration and Density
Market Performance 2005-2009
2005
9;1,62%
2007
11;1,54%
2009
16;1,55%
2006
9;1,42%
2008
13;1,44%
1,35
1,40
1,45
1,50
1,55
1,60
1,65
1,70
0 5 10 15 20
USD per capita
%GDP
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Distribution of non-life GWP by line of business
Market Overview
Fire, 5.95%
Motor Vehicle, 31.67%
Aviation, 3.24%
Cargo, 7.34%
Property and Casualty,
23.19%
Financial Risks, 0.06%
Health and Personal
Accident, 14.33%
Business Interruption,
0.21%
Agriculture, 0.01%
Hull and P&I, 11.49%
General Liability,
2.51%
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Distribution of life NB by line of business
Market Overview
Pure Endowment,
0.07%
Investment-linked,
30.16%
Annuity, 0.18%
Endowment,
66.31%
Whole life, 0.70%
Term life, 2.57%
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Investment Portfolio in 2009
Market Overview
477
1.434
15
299
20
-
250
1
8
2.505
534
43
16
99
114
26
5
136
42
1.016
1.011
1.478
31
398
134
26
255
138
50
3.521
- 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000
Deposits
Government Bonds
Secured Corporate Bonds
Shares, Unsecured Bonds
Capital Contribution
Real Estate
Lendings
Investment Trusts
Others
Grand Total
Life Non-life Total
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Supervisory Agency
Prior to 1992
BaoViet
Legal Division
1992-2003
Ministry of
Finance
Insurance
Division
Department of Banking
and
Financial Institutions
2003-2008
Ministry of
Finance
Insurance
Department
Legal Non-life Life
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Ministry of
Finance
Insurance
Supervisory Authority
Non-life Intermediaries
Center
of
Research
and
Training
Cabinet Inspectorate
Market
Development Life
Current
Supervisory Agency
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Sources of Data
– Reports from/about insurers/brokers
Audited Financial Statements
Statistical reports
– Monthly reports: insurance premiums by line of business
– Quarterly reports: GWP, NWP, policies, claims/payouts, reserves, investments,
solvency; agents
– Annual reports: quarterly reports and ASEAN reports, investor’s report
Insurance Supervisory Ratios: yearly report as early warning indicators
Ad hoc reports
On-site visiting reports
Project outputs
– Publications from the Insurance Association of Vietnam and other
domestic organizations/agencies
– Publications from international counterparts, IAIS, and organizations
Insurance Statistics
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Statistics as a supervisory tool
– High level: Regulation
Understanding the market development stage
Policies/rules formulation and application
– Low level: Supervision
Historical review and peer review Off site planning
Early warning
Insurance Statistics
Statistics NOT tell you something
BUT so many things!
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Data Collection:
– Issues of Quality: Accuracy, Completeness,
Consistency, Timeliness, and Auditability
Data Storage, Processing, and Use:
– Issues of IT infrastructure, human resource,
openness
Challenges (both insurers & supervisor)
Insurance Statistics
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Thank youfor your attention!